Nuvei responds to allegations of impropriety
Nuvei’s stock prices fell after a report from Spruce Point Capital Management.
Nuvei continues to remain confident in the financial outlook, the company disclosed on November 9, 2021, despite investigations by Spruce Point Capital Management over alleged issues. The company reiterated its long-term growth targets for total volume, revenue and adjusted EBITDA margin also disclosed on that date.
Spruce Point Capital Management published a report summarizing its allegations that Nuvei published inaccurate growth figures. Two legal firms have since launched investigations regarding potential class-action lawsuits.
On the news, Nuvei’s stock declined by over halfed in one day. It is now going up again.
Part of the report detailed Nuvei’s history, focusing on key figures within the company, including Nuvei’s CEO and Founder Philip Fayer.
“The personal attacks on Nuvei executives made by the short seller appear to have been made to distract from the Company’s achievements and progress,” it said in a statement.
“The short seller admits that it stands to profit significantly from Nuvei’s stock price decline, at the expense of Nuvei’s shareholders, customers and employees.”
To combat what Nuvei believes are “misleading” and “inaccurate conclusions,” the company has urged potential investors to research the reports themselves and consider the numbers from previous quarters. It has encouraged them to read the company’s financial results for the third quarter ended September 30, 2021 for more details on Nuvei’s performance and its outlook.
Nuvei believes the recent report issued by a short seller is intentionally misleading and draws inaccurate conclusions, innuendo and character attacks on key executives, among numerous other issues. It continues to urge investors to not make decisions based on the short seller report and to review public filings for material information that pertains to its business.
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